I want to give you more specifics of my situation and why I am digging my heels in on "valueing my home."
In 1997. . .we put $50,000 on a $130,000 home (pay attention to the "leveraging concept").
In 2008. . .being upwardly mobile and moving to a bigger house, we currently have a $360,000 home with a $123,000 mortgage.
So. . .we went from a $80,000 Net Worth on our Real Estate to $237,000 within 11 years. So effectively, that's about a 150% return.
Now. . .we started our Roth IRA's nearly the same time. . .I confess I am not sure of my exact contributions but I am aware of my wife's contributions somewhat.
We have put approximately $20,000 in retirement savings (I know. . .some years we did nothing) into a Blue Chip fund for her. . .today, it sits at about $25,000 in worth).
Woop.
Dee.
Doo.
Yah.
Go mutual funds.
We got no leverage with our mutual fund and a pee-poor return IMO.
Not to mention by contribuing to retirement savings and directing cash elsewhere, we lose leverage when we contribute to IRA's. I am not saying we shouldn't have done it but fair is fair. . .the home has won the race the last 10 years.
My International and Silver have done better but it still doesn't match what our home has done for us.
Yes, I realize all the pitfalls of owning a home and I am not casually dismissing them. And maybe all of this opinion that a house isn't an asset is based off of Pundits from the 1990's who said Domestic American Stock could never go wrong. . .8% per year forever and ever and ever.
But I guess I see a home as an integral part of wealth accumulation and I'll dig my heels in on the subject as you can see.
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